Exercise 4-15 Activity-based costing LO P3 Surgery Center is an outpatient surgical clinic that was profitable for many years, Medicare has cut its reimbursements by as much as 50%. As a the clinic wants to better understand costs. It decides to prepare an activity-based cost analysis, including an estimate of its general surgery and orthopedic the average cost of both surgery. The clinic's three activity cost pools and their cost drivers follow. Activity Cost Pool Cost Cost Driver Driver Quantity Professional salaries $1,075,000 Professional hours 8,600 Patient services and supplies 17,480 Number of patients 460 Building cost 88,400 Square feet 1,360 The two main surgical units and their related data follow. Service Hours uare Feet Patients General surgery 1,800 530 330 Orthopedic surgery 6,800 830 130 Orthopedic surgery requires more space for patients, supplies, and equipment. Required: 1.&2. Compute the cost per cost driver for each of the three activity cost pools. Use the results to allocate costs to both the general surgery and the orthopedic surgery units. Compute total cost and average cost per patient for both the general surgery and the orthopedic surgery units